Government Expenditure and Poverty Level in Nigeria
Abstract
This study investigates the relationship between government expenditure and poverty level in Nigeria. The specific objectives of the study were to determine whether government expenditure - recurrent expenditure and capital expenditure have any effect on poverty level in Nigeria using per capital income (PCI) as a measure of poverty level. Ex-post facto research design was used and the study used secondary data from the central bank of Nigeria statistical bulletin for the relevant years under consideration (2010-2020). The multiple regression technique was employed to investigate the relationship existing between the variables. The study found that there is a positive and significant relationship between recurrent expenditure and poverty reduction in Nigeria. Furthermore, the study also found that there exist a negative and an insignificant relationship between capital expenditure and poverty level in Nigeria. The study therefore recommend amongst others that federal government should increase its monetary budget on recurrent expenditure for the purpose of enhancing human capital development which will also lead to self-employment.
